Newfoundland warned about growing debt [Video]

ST. JOHN’S, N.L. –

Newfoundland and Labrador’s auditor general has issued a warning about the province’s financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit.

Denise Hanrahan said today the province finished the previous fiscal year with a net debt of $17.7 billion which, per capita, is double the Canadian average.

She says economic factors suggest the province’s financial position is worsening.

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Meanwhile, the Liberal government released a financial update forecasting a deficit of $218 million for the 2024-25 fiscal year, which is higher than the $152 million estimated in the March budget.

The update says revenues are down because of a drop in oil prices and production, both of which were partially offset by a lower exchange rate.

However, it says housing starts are increasing, unemployment is at a near-historical …